An Analysis Of The Income Statement Reveals That Interest Expense Was

Rama company s times interest earned was income before income taxes 50 00 income tax expense 150 00 net income 350 00 enlarged view 5 4 times 7 3 times.

An analysis of the income statement reveals that interest expense was. An analysis of the income statement revealed that interest expense w 80 000. Net refers to the fact that management has simply subtracted interest income from interest expense to come up with one figure. Hsu company s times interest earned was. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of.

An analysis in which all the components of an income statement are expressed as a percentage of net sales called. Flake company s times interest earned was. Hsu company s times interest earned was. Income before income taxes 600 000 income tax expense 150 000 net income 450 000 an analysis of the income statement revealed that interest expense was 50 000.

An analysis of the income statement revealed that interest expense was 100 000. Several ratios can be extracted from an income statement each of which reveals different types of information about a business. Interest expense is a non operating expense shown on the income statement. 2 rama company reported the following on its income statement.

Interest expense represents an amount of interest payable on any borrowings which includes loans bonds or other lines of credit and its associated costs are shown on the income statement. These expenses highlight interest accrued during the period and not the interest amount paid over the time period. Country company s times interest earned was. 8 5 times 6 5 times 3 4 times or 9 5 times.

This analysis is used to understand the cost structure of a business and its ability to earn a profit. An analysis of the income statement revealed that interest expense was 80 000. Net income plus interest expense. In other words if a company paid 20 in interest on its debts and earned 5 in interest from its savings account the income statement would only show interest expense net of 15.

Flake company reported the following on its income statement. Interest expense is one of the core expenses found in the income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time.